Note that the problems with NFT projects are more than enough. As a recent example we can recall the activity of the legendary boxer Floyd Mayweather, who announced the launch of a collection called the Mayweverse.

In response, users recalled his old Floyds World collection. It consisted of 11,111 tokens that sold for 0.15 ETH. This brought the creator a total of 1,666 ETH, but they are now trading from 0.01 ETH.

Floyd Mayweather’s Floyds World collection

As a result, Floyd himself took it upon himself to clean up tweets about the collection to avoid further criticism. However, members of the blockchain community noticed the activity as well.

Floyd Mayweather’s deleted tweet about his old NFT collection

How money is being lost on NFT tokens

Here’s a quote from the above account, published by news outlet Cointelegraph.

It is with a heavy heart that we must inform you that we can no longer continue the healthy development of the NEONEXUS project. We would like to hand over the project to our community or a community-selected party, if that is feasible/possible. I am deeply sorry, Jack.

Analysts estimate that the project has raised about 25,000 SOL or $2.2 million to release its own NFT. Given that Solana’s price rose to over $150 around the time of the unique token release process, the project could have earned as much as $4.5 million.

Neonexus

As a reminder, NeoNexus is a meta-universe with the potential for different digital assets and its own management token. Prior to Shea’s announcement, 4,000 digital plots in the meta-universe itself had been sold, with plans to expand those sales by a factor of 1.5. In addition, the project sold NFTs related to virtual characters and their accessories. Overall, the NeoNexus community is quite extensive, with the project’s Discord channel having over 13,000 members.

Shea also made a statement on Discord and noted that market conditions were allegedly to blame for the development halt. The project’s investment is allegedly being used to pay salaries, provide technical infrastructure, commissions and so on. Here’s his rejoinder, in which the developer shares details of what’s going on.

It has been incredibly difficult to try to develop and continue our project in this ecosystem and market conditions when the price of SOL has dropped drastically and the activity, volume and interest in the whole ecosystem of unique tokens on Solana has declined.

Neonexus creator Jack Shea

Solana’s value has indeed fallen by almost 50 per cent in the past three months, with the altcoin now trading around $90. Here’s a relevant chart that shows what’s happening with the cryptocurrency.

Solana exchange rate over the past six months

Shea added that more than 20 employees of the parent company, called Unlock Defi, were laid off at the end of March, after which he clarified whether a community takeover of the project was possible. That said, many commentators accused him of the project’s creator simply covering up the usual scam of his investors with some far-fetched problems.

Crypto-enthusiast zachxbt, which investigates fraudulent schemes in the crypto-sphere, has also published some interesting footage of Shea himself. They show him posing in a supercar. Accordingly, it is possible that the creator of the project may have used the funds raised to enrich himself.

So this project has raised about $4 million from the NFT release and now somehow it has run out of money in just a few months? Here’s its founder bragging about the supercar back in November last year.

Jack Shea in a supercar

Various NFT projects advertised their offers in response to the NeoNexus tweet in an attempt to ease the losses some investors may have suffered due to the announcement. Many offered so-called whitelists for upcoming rounds of their token issuance to those who responded with “NEONEXUS” on their Discord channels. Admittedly, it all looks more like an attempt to “poach” some of the community that was hurt by Jack Shea’s decision.

Error when trying to access the Neonexus website

At the time of writing, the NeoNexus and Unlock Defi project websites are down. There is no exact information on when the community will be able to take over responsibility for further development of the project either. Unfortunately, such situations are not uncommon in the crypto-sphere. They once again demonstrate the importance of one of the main rules of every investor: do not invest absolutely all your money in just one project.


We believe that it will be impossible to save the NFT project, because in fact the authors themselves have abandoned it. And since there are more than enough collections of non-interchangeable tokens in the world, hardly anyone will want to spend their own finances to rehabilitate such a project. So in this case we can only sympathize with investors who were counting on NeoNexus' growth.

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